EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Limited, each of which is a separate legal entity. Ernst & Young Limited is a Swiss company with registered seats in Switzerland providing services to clients in Switzerland.
How EY can help
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A political conceptual agreement was reached for a new world tax regime. A substantial majority in the G20/OECD Inclusive Framework has agreed to a fundamental reform of international tax law. EY will support you in implementing the requirements of the BEPS 2.0 project.
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1. Data
For many organizations, BEPS Pillar Two has proven to be more of a tax compliance exercise than a material tax collection mechanism. One significant outcome, however, is the visibility it provides into the underlying foundations — showing where tax data is difficult to collect, reconcile, explain and control, and exposing the true state of tax and legal entity data quality, tax accounting readiness and jurisdictional reporting capability.
Has tax data become the foundation of the modern tax function?
One of the clearest lessons from the first BEPS Pillar Two reporting cycle is that tax accounting data quality and process maturity have become critical enablers of tax compliance. BEPS Pillar Two calculations begin with tax accounting data, meaning that weaknesses in tax accounting processes, controls or data governance can directly affect both reporting outcomes and tax compliance efficiency.
Organizations with a strong tax accounting foundation typically demonstrate:
- Stable estimates – Prior-year corrections and return to provision adjustments are limited and estimates are documented and defensible.
- Visibility over tax balances – The tax bases of assets and liabilities are understood and supported.
- Finance integration – Tax is embedded within the close and reporting cycle rather than operating as a downstream process.